The 26 counties has a rapidly ageing population. According to the Central Statistics Office (CSO), the amount of the population aged 65 or over grew 40% between 2013-2023, from 569,000 to 806,000. By 2051, the number will double to 1.6 million.
As with everything in this country, the lack of state-provided care and services for the retired population will be turned into an investment opportunity. Only one-fifth of nursing home beds are publicly provided: that is, 5,500 of 31,000 total. Growing demand is going to be met – if the Irish state’s plans succeed – by the private sector, hoping to profit from old age. Two out of every five of the total beds are owned by foreign capital.
The largest owner is French nursing-home operator, emeis, formerly Oprea Group, who own more than 2,000 beds. Much of their stock was bought from Irish private companies in deals worth hundreds of millions of euros. One of their Irish board members is former Progressive Democrats Minister of Health, Mary Harney.
In 2022, then Oprea Group was shaken by revelations about mistreatment in its nursing homes in its native France. Additionally, there were reports of poor working conditions and embezzlement of public funds. It re-branded and its financial restructuring was guaranteed by the French state. This hasn’t affected its plans for expansion into Ireland, with zero comment from the Irish government.
Coming in second place is Mowlam Healthcare, owned by Ireland-based Cardinal Capital Group. Mowlam’s stock comes in at over 1,500 beds. The third largest firm is CareChoice, with 1,300 beds. Formerly Irish-owned, they were bought by Britain-based Emerald Investment Partners and then re-sold to French private equity firm Infravia Capital Partners – who own the Mater hospital – who then re-sold it to another French business, Emera group, who own 70% of Virtue Integrated Elder Care, who control 850 beds.
Dutch private equity firm Waterland owns the Silver Stream group, who also own just over 850 beds. Nearly 700 beds are owned by Trinity Car, sold to French firm DomusVi. 650 beds are owned by Sonas Nursing Homes, owned partly by French property investment fund, Pierval Sante.
Belgian Real Estate Investment Trust Aedifica stated that Ireland is “an attractive investment opportunity … since the care market is very fragmented and the rapidly ageing population will lead to increased demand for healthcare real estate.”
Taken lessons from its subsidising of landlords, the state has adopted the “Fair Deal” scheme, where the state pays part of nursing home care costs, whether in private or public care homes. Nearly half a billion euro is given to the private sector by the state annually. Despite the influx of capital into the care home “market”, care is still better in public, state-provided care homes, with a third more funding per resident in public care homes as opposed to private. Significantly, public homes are much better for working conditions than private homes, being more likely to be unionised.
Professor Des O’Neill of Tallaght Hospital, has stated that there is a “wholesale privatisation” of the nursing home sector. He also pointed out that the Irish state had “among the worst death rates among nursing home residents in Europe.”
In a public-private partnership in 2022, the HSE secured a deal with Irish builders John Sisk and Son, along with Britain-based investor Equitix, for a community nursing project with 530 beds across several counties. Financing of 250 million euro was provided by the EU’s European Investment Bank, Bank of Ireland and German state bank Nord LB. Of interest is that the HSE will pay a total of 600 million euro over 25 years – 24 million euro a year – despite maintaining ownership of the sites.
Irish developers Tetrarch and Bartra also have significant plans for build-to-rent homes aimed at older renters: both are also backed by foreign capital. Richard Barret, founder of Bartra, is known for his support of “co-living” developments and has previously been funded by Ireland’s sovereign wealth fund, the Irish Strategic Investment Fund. Bartra have previously claimed that tenants in their developments are not covered by the usual tenant protection laws and their co-living ideals have been described as “Dickensian”.
It is clear that the Irish state is intent on promoting precarious old-age. Our ageing population has already become a major investment opportunity for foreign capital, eager to make a quick profit from reducing the needed care for a significant section of our people. Additionally, it will be used to make people work longer, with a higher pension age, with pensioners paying high rents off of meagre state pensions, with profits state-guaranteed. The average age will continue to climb as our youth emigrate abroad.
